SPX update: hourly RSI-14 and MACD today at or below levels that coincide with significant bottoms since the 2011 low

Looking at the hourly chart we can see that at today’s low, the hourly RSI-14 and MACD recorded levels that coincided or are close to significant market bottoms since the all-important 2011 low. Although + div on these indicators is preferred to more confidently signal a bottom is in, the past 3+ years tell us, it is not a necessary requirement. Note that today the hourly MACD recorded the 2nd lowest reading, just 4 points shy of the lowest reading in October since the 2011 low.  In yesterday’s update I mentioned that a around 76.4% retrace would still be acceptable to allow for the minor 1, 2 wave count to prevail, and so far the SPX did stall around that % retrace today. Hence, we’ll keep that count as the preferred count until proven otherwise. A bounce from here with marginal lower lows after that is still OK for this count, and would likely set up some nice + div on the aforementioned TIs to signal a very important bottom. However, a break below SPX 1976 after that bounce means the alternate count of an extending intermediate ii wave is then the preferred count. Regardless, you have to ask yourself the question: “what’s on your shopping list” for when wave 3 of 3 is upon us!

Hourly TIs over past 3+ years

 

 

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One thought on “SPX update: hourly RSI-14 and MACD today at or below levels that coincide with significant bottoms since the 2011 low

  1. Pingback: SPX update: now vs. fall 2011 comparison shows many similarities | Intelligent Investing

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